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Business Environment

Notes level of 24. The five largest shareholders France, Germany, Japan, the United Kingdom and the
United States appoint an executive director, while other member countries are represented by
19 executive directors.
The President of the World Bank chairs meetings of the Boards of Directors and is responsible
for overall management of the Bank. By tradition, president of the Bank is a national of and is
nominated by the largest shareholder in the bank, the United States. He is elected by the Board
of Governors for a five-year, renewable term.

The World Bank operates under the leadership and direction of the president, management and
senior staff, and the vice presidents in charge of regions, sectors, networks and functions.
There are four Boards of Executive Directors representing the four institutions of the World
Bank Group: International Bank for Reconstruction and Development (IBRD), International
Development Association (IDA), International Finance Corporation (IFC) and Multilateral
Investment Guarantee Agency (MIGA). The Executive Directors serving on these boards are
usually the same.

Vice Presidents

They are the principle managers of the Bank and look after its operations. Vice Presidents are
appointed for different functions such as VP Finance, VP Network, VP Regions (South Asia,
Africa, Latin America etc.) VP Audit, VP Controller, VP Strategy, Finance and Risk Management,
VP Human Resource, VP External Affair, etc.

Did u know? Basic Facts about World Bank
Established on: July1, 1944, Bretton Woods, New Hampshire
Headquarters: Washington DC

President: Paul Wolfowitz
Membership: 184
Affiliates: IDA, IFC, MIGA, ICSID

International Development Association (IDA)

The IDA is the soft loan section of the World Bank established in 1960. Its loans are different from
World Bank loans in several manners. It provides concessional loans which have a maturity of
up to 40 years compared with 15 to 25 years' maturities of IBRD. The IDA can also grant grace
period of 10 years before repayment of principal or interest begin, whereas the grace period of
World Bank usually does not exceed 5 years.

International Finance Corporation (IFC)

The IFC's main function is to assist in the economic advancement of LDCs by promoting growth
in the private sector of their economies by helping to mobilize domestic and foreign capital for
this purpose. It was established in July 1956 to help strengthen the private sector in developing
countries, through the provision of long-term loans, equity investments, guarantees, standby
financing, risk management and quasi-equity instruments such as subordinated loans, preferred
stock and income notes, through advice and technical assistance to business and government.

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